Interesting News in Healthcare Q4

OVERVIEW – Heading into 2018 the demand for services supporting the life sciences and health care industry continues to be robust and driven by specific trends and data points:

The U.S. population continues to grow; and the increase among elderly and people with chronic conditions accelerates: persons aged 65 and older will increase from 46M in 2017 to 90M in 2060. This market segment will represent 25% of the population by 2060 (it was 15% in 2016). Half of all US adults have at least one chronic health condition requiring long-term medical treatments.

Healthcare spending was $3.35 trillion in 2017, more than $10,000 per person.

The cost of developing an FDA approved drug is currently $2.9 billion, a 150% increase from 2003.

The FDA began approving drugs for gene therapies in 2017, opening up a new area of treatment.

Digital health initiatives garnered $6.18 billion in funding in 2016, between $5 billion and $11 billion, depending on which source you use. Either way a considerable amount of investment in this space.

CVS to buy AetnaU.S. drugstore chain operator CVS Health Corp agreed to acquire U.S. health insurer Aetna Inc for $69 billion. The year’s largest corporate acquisition combines one of the nation’s largest pharmacy benefits managers (PBMs) and pharmacy operators with one of its oldest health insurers. Aetna’s previous plan to buy insurer Humana was blocked by a federal judge. Similarly, a proposed merger of Anthem and Cigna health insurers had also been blocked.